Analysts’ Evaluation of the Information Content of Changes in Auditor Types

Companies hire auditors to meet legal requirements if they are publicly traded and to provide credibility to their financial statements. However, all auditors may not provide the same level of service to third parties. Prior research regarding such events as initial public offerings has found qualitative differences among big Five and non-Big Five auditors. Companies may, therefore, switch auditors to attain some perceived qualitative difference in the audit engagement. The degree that this auditor change is or is not incorporated by financial analysts into analysts\u27 forecasts has not been fully researched for the benefit of determining if there is any information content associated with the auditor change on security prices. The results of this study show that financial analysts do not fully incorporate information relative to auditor changes in their forecasts. This study might provide insight into the currently accepted view of the Efficient Market Hypothesis with respect to the information content of auditor changes and the market\u27s interpretation of the information. In addition, analysts may need to scrutinize auditor changes more closely in order to fully understand the signal that may be included in the decision to change auditors

The cognitive context of sensorimotor synchronisation

The cognitive context of sensorimotor synchronisation (SMS) starts with the assumption that performance of relatively simple behaviour emerges through the background noise of a psychological context. Despite progress, and growth in understanding of the component sources of variability in cognition, perception and action, the role of more executive cognitive processes have not yet been well integrated to successful models of sensorimotor synchronisation. This thesis presents a series of studies investigating more precisely the role of executive control functions on the variability of repetitive production of movements. The findings of the 5 experiments presented are discussed in relation to existent theories and ongoing debates in the field of sensorimotor synchronisation. The contribution of this research highlights the importance of executive processes often overlooked when assessing the nature of variability in rhythmic movement production and opens some clear pathways for future research, adjustments to current models used, and novel paradigms

Iss. 4; pg. 512, 24 pgs Journal of Public Budgeting, Accounting & Financial Management

Abstract (Document Summary) In the past years the incidence of fraud has increased dramatically and has cost government organizations billions of dollars. In response to this situation, Statement on Auditing Standards No. 82 was issued. This statement emphasizes the auditor's responsibilities with respect to fraud and should induce government managers to implement proactive measures to deter and detect fraud. The involvement of the internal auditors is instrumental in any fraud prevention program. In addition, the independent auditors will review details of the internal auditor's work for information concerning fraud prevention. This paper examines the nature of fraud and how the internal auditors can improve fraud prevention and detection in government entities. Full Text (6445 words

The federal false claims act: A guide for internal auditors

This article provides a basic overview of the FCA and analyzes some of the challenges faced by qui tam litigants, internal auditors, and the financial crime experts who assist them. (p.3

Gaining a new balance in accountants\u27 liability to nonclients for negligence: Recent developments and emerging trends

The objectives of this Article are threefold. The first is to analyze state court decisions and statutes that have slowed or reversed the expansion of accountant liability to third parties for negligence. The second is to examine this trend in light of the different legal standards used by the states in deciding which third parties have a right to sue accountants for negligent misrepresentation (or are owed a duty by accountants). The third objective is to refine, enhance, and update the knowledge of attorneys, regulators, accountants, and educators about auditors\u27 legal responsibilities to nonclients for negligence. (p.19